"Healthy Residential Rentals for All" Denver Rental License Policy - Councilwoman Gilmore
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“Healthy Residential Rentals for All”
Denver Rental License Policy
Councilwoman Gilmore
1
Healthy Homes Are Fundamental
Too many families are forced to choose between a
home you can afford, or one that is healthy for your
family
The U.S. Dept of Housing describes "Healthy Homes" as
a century-old concept that “promotes safe, decent, and
sanitary housing as a means for preventing disease and
injury. There are more than 6 million substandard
housing units nationwide.”
- HUD.gov, Making Homes Healthier for Families
“Housing conditions can significantly affect public
health. Residents of these units are at increased risk for
childhood lead poisoning, asthma, fire and electrical
injuries, falls, rodent bites, exposure to indoor toxicants,
HUD “Help Yourself to a Healthy Home” guide
and other illnesses and injuries.”
– CDC The Healthy Homes Initiative Fact Sheet
2
Timeline
Initial talks with
Meeting with 2021 Budget Denver City
Excise & Stakeholder
Administration & Dept. Council Process; added
License and process (7 meetings)
Directors rental license request
research
April July May June August September October
2019 2019 2020 2020 2020 2020 2020
November December January February March April May
2020 2020 2021 2021 2021 2021 2021
Draft ordinance work Community Outreach City Council
with license attorneys Process Adoption
3
Stakeholder Group & Outreach
Co-Sponsors Outreach Highlights*
Councilwoman Pro Tem Torres
Apartment Association of Metro Denver (3 meetings)
Councilwoman Robin Kniech
Denver Metro Association of Realtors (52 attendees)
Stakeholder Group Neighborhood Development Collaborative (11 non-profits)
Elevation Community Land Trust INC ZAP (52 attendees)
Enterprise Community Partners Anti-Displacement Denver Network (36 attendees)
Colorado Coalition for the Homeless Renter’s Roundtable (23 attendees)
Healthier Colorado Montbello 20/20 (21 attendees)
City of Boulder Denver Housing Authority
Denver Excise and License GES Coalition
Denver Office of Economic Development Ross Management
Denver Office of Housing Stability Alden Brown and Co
Denver Community, Planning & Development Cornerstone
Denver Dept. of Public Health & Environment Red Peak
Denver Office of Climate Action, Mercy Housing
Sustainability & Resiliency Northeast Denver Housing Center
West Denver Renaissance Collaborative
Servicios de la Raza
Colorado Legal Services
InterNACHI
Master Certified Inspector
4
*Comprehensive outreach listed in Appendix on slide 24
The Problem We Are Solving For
Public health, welfare and safety concerns in
residential rentals
Denver does not track rental housing stock data
and landlord/operator contact info
Housing and public health crises make the
housing stability of renters vital
Boulder’s Tenant Landlord guide in Spanish
5
How a Rental License
Benefits Denver
General Data DDPHE Residential Health Program
- Accurate rental data and contact - Supports RHP program
information to better inform policy needs
- Facilitates city led educational housing
- Community outreach and education efforts
Rental License Benefits for Denver
Housing Stability Climate Action, Sustainability &
- Enhance renter protections, assistance Resiliency
& communication - Support climate goals by collecting data
- Foundation for other housing stability to be used for future energy efficiency
policies: relocation housing assistance & objectives
eviction assistance
6
Renter Protections
• Owner shall provide a copy of an
executed written lease to the tenant
within 7 days for all new tenancies
exceeding 30 days
• Owner shall provide tenants with a
notice of “Tenant Rights and
Resources”
• Owner shall provide “Tenant Rights
and Resources” to any tenant along
with any rent demand posted
7
Denver Rental Data
Type of Housing # of total housing # of potential rentals Potential rentals of
units within the total total units in %
Single Family 133,783 25,668 rentals 19%
Homes properties
Condos 41,995 units 15,888 rentals 38%
Rowhouses 22,700 units 5,957 rentals 26%
Apartments 145,582 units ~6,600 parcels 100%
Total 519,838 54,113 total with ~37% of Denver
units/properties 6,600 apartment housing stock
parcels are rentals
Data taken from Assessor’s Office (Dec 2019) 8
• Licensing by parcel
instead of units
creates more equity
and streamlines
process and fees
• Apartment complexes
vs. high rises Approximately 6,600
apartment parcels in Denver
9
Rental License Proposal
Phase 1: Phase 2: Phase 3:
Jan 1, 2022 Jan 1, 2023 Jan 1, 2024
Early licensing License required for any person License required for any
open for all rental to offer, provide, or operate a person to offer, provide,
dwelling units on a residential rental property or operate a residential
parcel consisting of 2 or more rental rental property consisting
dwelling units on a parcel of a single rental dwelling
unit on a single parcel
Examples:
• Apartment building Examples:
• Apartment complex • Single-family home
• Condo units • Condo unit
• Rowhome units • Rowhome unit
• ADU
Early licensing open for single
dwelling unit on a single parcel
License is renewable every 4 years, unless ownership changes 10Application & License Fees
Phase 1 - Jan 1, 2022 Phase 2 - Jan 1, 2023 Phase 3 - Jan 1, 2024
License required for 2 or License required for a
Early Licensing more rental units on a single rental unit on a
parcel parcel
Application • $25 • $50 for Phase 2 required • $50 for all rentals
Fee* • Reduced by 50% for rentals
all rentals during • $25 for early license opt
early licensing in for single rental unit
phase on a parcel
*Application fee is non-refundable as it pays for the administrative costs
1 dwelling 2 – 10 11 – 50 51 – 250 Above 250
unit units units units units
License Fee* $50 $100 $250 $350 $500
*License fee is refundable if license is not approved
11Examples of Cost
Single Family Home Apartment High Rise Apartment Complex
with Early Licensing with 200 units with 200 units
Early Application $25 Application $50 Application $50
License $50 License $350 License $350
Total Cost $75 Total Cost $400 Total Cost $400
Approx. $1.56 per month* Approx. $8.33 per month* Approx. $8.33 per month*
*License is renewable every 4 years, unless ownership changes 12Inspection Requirement
To obtain a license an inspection is required by a
certified private home inspector
• Mirrors Boulder’s rental license model
by utilizing private home inspectors to
create efficiencies for owners
• Inspections based on checklist of the
minimum housing standards in DRMC
Chapter 27
• Licenses are renewable every 4 years, Workforce Opportunities
and require a new inspection at renewal Potential to create pathways for
residents to get certified/trained
as a home inspector
13Inspection Requirement
Multi-Dwelling Units Single Rental Units
2 or more rental units on a single parcel 1 rental unit on a single parcel
are required to have 10% of the units are required to be inspected to
inspected at random obtain a licenseComplaint-Based Issues
for Rentals
• The current DDPHE Residential
Health Program will continue to
address all complaint-based cases,
even after the license requirement is
in place
• Of those reported, DDPHE receives
about 1200 annual complaints for
issues such as mold, heating, water,
ventilation, and other health and
safety concerns
15Online Application &
Licensing Portal
• Application available online via the Excise and
License Accela online portal, similar to Short Term
Rentals
Application would require basic information:
– Owner-Applicant’s rental location(s)
– Owner-Applicant’s contact information
– If out of state, local responsible party contact
information
– Manager(s)’s contact information (if applicable)
– Photo ID for Owner-Applicant and Manager(s)
– Legal attestation to the minimum housing
standards in DRMC Chapter 27 and confirmed
by proof of inspection
16Exemptions
Exempt from licensure program:
• On-campus college housing
• Boarding homes
• Short-term rentals
• Commercial lodging
Exempt from application and license fees but must obtain a license and show
proof of inspection:
• Rental properties owned in whole or in part, or leased and operated by any
governmental agency
• Income restricted rentals owned, leased or operated by a 501c3 tax exempt
organization
• Affordable housing rental projects where 80% of the units are income restricted
Must show proof of inspection required by a government agency
Exempt from the inspection requirement:
• New builds less than 4 years old do not require an inspection
17Penalties & Disciplinary Hearings
The ordinance will utilize standard license language for
penalties and hearing process
Administrative Fines
• Director may assess an administrative fine against the licensee not to
exceed $1,000 per violation
• Administrative fines deadline for payment not to exceed 30 days
Disciplinary Hearings
• The director may after investigation and a show-cause hearing at which the
licensee has an opportunity to be heard can suspend or revoke any license
previously issued for any violation (DRMC Chapter 32-22)
182021 Initial Budget Costs
Accela Software $318,718
Public Affairs Coordinator $46,693
Outreach $20,000
License Techs $48,750
$434,161
Funds were approved in the 2021 budget council asks for $391,800
by the Mayor and would be released once ordinance is passed
During our outreach efforts, funds for education was a priority so we
have increased those funds for 2021. The software costs also have
increased slightly since the budget process.
19Citywide Community Meetings
Upcoming Virtual Community Meetings
Thursday, April 22 at 5:30pm
Saturday, April 24 at 10:00am
To register and for more information, visit
https://denvergov.org/longtermrental
20Questions?
21Appendix
21Appendix - How We Got Here
Date Discussion
4/1/19 Met with EXL to explore software for rental registry and license program
May/June ‘19 Initial research with our legislative analysts
7/24/19 Working group meeting: Boulder presented their Rental License program
8/16/19 Substandard living conditions at single family rental in Green Valley
Ranch
9/25/19 Working group meeting: Rental vs. licensure discussion
10/21/19 Working group meeting: Single-family rental properties data
11/13/19 Working group meeting: DDPHE Feasibility study on energy efficiency
1/15/20 Meeting with CPD to explore where the program could live
1/22/20 Working group meeting: Follow up with Boulder’s program
Feb/Mar ‘20 Research on inspection process and options & COVID-19
4/1/20 Working group meeting: Inspection process feedback & discussion
5/4/20 Working group meeting: Finalize inspection process 23Appendix - How We Got Here
(continued)
Date Discussion
Summer ‘20 Met with EXL/DDPHE to discuss program in their agencies and phasing
Sept/Oct ‘20 Worked with EXL & Denver City Council to submit as a 2021 budget
request
10/29/20 Working group meeting: Presented updated, phased approach program
Nov/Dec ‘20 Worked on draft ordinance with city Excise & License attorneys
1/27/21 Working group meeting: Updated presentation & feedback
1/28/21 Present to Budget & Policy City Council committee
24Appendix – Outreach Efforts
Organization Name Organization Name
Apartment Association of Metro Denver (3 meetings) Kentwood Real Estate - Distinct Real Estate
Ross Management Group Compass
Apartment Investment and Management Co Metro Brokers
Greystar Heter and Company, Inc.
Cornerstone Apartment Services, Inc. LUX. Denver
RedPeak Properties Berkshire Hathaway HomeServices Innovative Real Estate
Alden Brown and Company LLC Century 21
TOD Properties LLC Zadel and Associates Realty Inc.
Four Mile Capital The Ridgewood Company, LLC
RD3 International Association of Certified Home Inspectors
Springman, Braden, Wilson & Ponitus Law Firm Master Certified Home Inspector
Milgrom & Daskam Law Firm Inter-Neighborhood Collaboration (INC) (52 attendees)
Luczak Real Estate Anti-Displacement Denver Policy Network (36 attendees)
Lyons Realty Group, LLC Servicios de la Raza
Denver Metro Association of Realtors (52 attendees) Urban Land Conservancy
RE/MAX Alliance Colorado Legal Services
Keller Williams West Denver Renaissance Collaborative
Colorado Realty Pros University of Colorado Denver
25 25
Madison & Company Properties GES CoalitionAppendix – Outreach Efforts
Organization Name Organization Name
Neighborhood Development Collaborative (11 non-profits attending) Colorado Poverty Law Project
Denver Housing Authority (DHA) Center for Health Progress
Del Norte Center for Work, Education and Employment
Habitat for Humanity of Metro Denver Mile High Connects
Rocky Mountain Communities The Denver Foundation
Mental Health Center of Denver COVID-19 Eviction Defense Project
Archway Housing & Services Colorado Cross-Disability Coalition
Cappelli Consulting DRCOG
Colorado Housing Assistance Corporation Healthier Colorado
Community Resource and Housing Development Corporation CRHDC Mile High United Way
DURA Colorado Coalition of Manufactured Homeowners
NEWSWED House District 7 Meeting
Renters’ Roundtable (23 attendees) Montbello 20/20 (21 attendees)
Colorado Center on Law and Policy District 11 Community Cabinet (15 attendees)
Colorado Legal Services Urban Peak
East Colfax Community Collective National Association of Real Estate Brokers (NAREB)
B Konnected Northeast Denver Housing Center
Be well Health & Wellness Initiative Atlantis Community Inc
26 26
Colorado 9 to 5 Mercy HousingHeat Map: Single Family Rentals
27Denver Min. Housing Standards
City and County of Denver
Residential Housing
Regulations
- Chapter 27 DRMC
- Adopted by the Board
of Environmental
Health on June 9, 2016
DDPHE utilizes these
standards for their current
residential health
inspections
28Tenant-Landlord
Education & Outreach
• Rental registries and licenses provide more avenues
for landlord-tenant education and outreach
– Tenant rights
– Building up our tenant and landlord
relationship/communication
– DHS programs & supports – TRUA, property tax rebate, etc.
• The license fee is set very low and good for 4 years to
ensure little to no impact on the landlord or tenant.
– According to a study conducted by the University of
Minnesota in partnership with Roseville Housing and
Redevelopment Authority (2012) little evidence was found to
show that landlords passed along inspection fees to their
tenants through increases in rent. Rental Licensing to
Achieve Compliance
• “Relocation fees” companion proposal to ensure if
tenants are evicted, they receive compensation from
the landlord to find a new rental
29Other Municipalities Efforts
City Type Fees Frequency
Boulder, CO License + $105 for license per bldg; Every 4 years, unless ownership
Inspection private inspection fee changes
(avg. inspection is $150 for first unit)
Westminster, Registration No registration fee; Every 4 years for 6 to 20-year-old
CO + License + License fees are $50 per rental property; properties; every 2 years for properties
Inspection complaint-based inspection with $40 fee older than 20 years
and income restricted is $20
Federal Registration Grant for license and inspection; Register & inspection every 4 years
Heights, CO + Inspection $90 no show fee
Seattle, WA Registration $70 for registering a property, plus $15 Every 2 years for registration; every 10
+ Inspection for each additional unit; years for inspection
private inspection + $40 filing fee or city
inspector ($175 for first unit)
Portland, OR Registration Registration fee is $60 per unit Annual
Baltimore, MD Registration No registration fee; Registration required annually;
+ License + License for 1 & 2 family dwellings: $30 inspection good for 2 years first then
Inspection per unit; MF is $35 per unit; you can get a 3 year on renewal;
Residential vacant bldg. $100; vacant license time can be dependent on
30
unit $30; private inspection fee recordPenalty/Appeals in Municipalities
City Type Violations & Penalties Appeals
Boulder, CO License + Violations by areas of affordability, where the Yes, appeals of city
Inspection affordable areas are violated more harshly manager’s decision within
(1st - $500, 2nd - $750, 3rd - $1000) and in other 30 days of issuant
areas (1st - $150, 2nd - $300, 3rd - $1000); can revoke
license; Penalty is fine or no more than 90 days in jail
Westminster, Registration+ If owner fails to correct the violation in a timely Yes, can appeal to the
CO License + manner, the city manager can issue a complaint and Building and Fire Code
Inspection summons for prosecution in municipal court or Appeals Committee; any
abatement as a nuisance decision made from the
committee can be appealed
to District Court
Federal Registration N/A for grant for license and inspection; N/A
Heights, CO + License $90 no show fee
Seattle, WA Registration $30 late fee for registration renewal or inspections; Yes, reduced penalty or
+Inspection Penalty for violations not addressed are $150 per day appeal process available in
for first 10 days then $500 per day after that; also can program admin process
escalate to courts
Portland, OR Registration Civil penalties per unit can result from failure to No
register; registration submitted with their Business
License Tax return
Baltimore, MD Registration Penalty of no more than $500 for each offense; can Yes, notice and opportunity
+ License + deny, suspend or revoke license for hearing
31
InspectionAnnual Residential Health
Program Complaints
Year # of complaints to DDPHE for
substandard living conditions
2015 1,266 complaints
2016 1,187 complaints
2017 1,006 complaints
2018 1,198 complaints
2019 1,268 complaints
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